Mitigating Risks in Art Related Financial Transactions

This paper lays out general insights around art as an asset class and how best to mitigate risks inherent in art-related transactions to buyers and sellers, financial institutions, trust and estate practitioners, and art investment vehicles. 

As we look toward the future, we can expect that globalization and structural inefficiencies in the art market will continue to drive demand for financial innovation around art assets by sophisticated collectors and investors. The development of preventative strategies for dealing with the problems of art theft, forgery, title defects and illicit traffic of works will depend in large part on the willingness of those providing financing to the art market to adopt best practices including requiring title insurance and executing due diligence to the fullest extent possible.